Investor Fraud - Anatomy of a cheat - find a Ponzi scheme, and con artists - Part III of III

Part III of III series of articles about Ponzi schemes are examined in this world a real, ongoing fraud, the fraudster behind and a couple of hundred Investors Corporation of the victims of his criminal enterprise, Millennium III.

History: At an early age, Scott Light Gregg was falsely led to believe that its base was connected directly Maine heritage bloodline Plans Time-Life, Henry Luce. It is unclear whether the error was instilled in him by staffDementia or dementia collective family. Luce left his highly dysfunctional family at the age of nineteen and began trading in marijuana. Within a period of five years, humans grew too petty retailers: aircraft cargo goods, largely taken directly from Jamaica.

Ten years in this project, realized that a light profit margin was much larger than the cocaine trade to achieve. It was in early 1980, cocaine was a popular recreational drug and acceptedat. It was not the stigma of drugs that exists today. Light has been given the rapid resolution of impatience, entrepreneurship, reckless and boundless ambition, and escaped an insatiable desire for recognition, money, and the cache that her family for the better part of a generation, as he tried in vain have been identified with the light is golden line Time-Life.

Sociopathology focus only purpose and indifference to the count in his bodywake, both literally and metaphorically speaking, light allows for a gateway and distribution center in Seattle, Washington, quickly build and dominate the stray U.S. Northwest Territory. I come from a family of commercial fishermen Light was well versed in the charts. The Pacific Northwest insecure, allows remote coastal inconspicuous entrance and exit of transport aircraft from Colombia. Light leased a pier off Lake Washington, and houseboats, frequented share hosting powered cocaine room of important artists, entrepreneurs, lawyers, bankers and politicians.

Within a period of five years, the distribution network extends north to Canada and as far South West Aspen, Colorado, where his team administrative operations under control of the cartel. The business growing in a NASCAR racing team invested. Product was transported to the points used in the drop-trailers, cars and pit equipment for cargo ferry from city to city.

Like most companies Narco-centric Light> Venture managed borrowed time. If the DEA and the FBI broke the drug ring, all senior employees to save for a single missed. The prisoners refused to indicate the performance tests, in turn, allows its staff to quietly look for other business opportunities. Light took a two-year low and was carefully studying the latest economic trends. It was the beginning of the nineties and the Nasdaq bubble began to gestation. Silicon Valley, Boston, Austin and Seattle were the new Wild West. Greed andwere green in the air. Fast-moving start-up of new media, "paradigm" cocktail napkin Boardroom excluded, as well as drugs, violence, betrayal and manipulation Legal: unlike Twenty-First Century Corporate best practices known. Easy products have been the currency of success, futures contracts and penny stocks, new shocks. The careful screening of business plans hesitated the rush of being first to market with a specific product. Indiscriminately Venture Capitalistnovices and veterans IT shower with a starting capital than most could hope realistically meet in profits. Boom-bust high-tech gold rush in full swing. Light would not have written a better entrée into legitimate businesses.

Ponzi Scheme: Light so marked Gregg emergence of organized crime, drug trafficking, organized crime on Wall Street. The establishment of the Millennium III Corp. (Mill) recalls the introduction of Light at Fortune 500 companies in VC cotillion.To fly under the radar of the SEC and regulators, the new CEO of Mill, broadband streaming media company's shareholders are not limited to its first pool thirty-five accredited investor. Later violated SEC Rule 505 exception with the inclusion of ten new investors. Instead of issuing shares to investors, issued light "convertible loan note" means any instrument convertible or repurchase of shares in Mill maturation. Light took histortured business model one step further and argue that the company manages a trust that funds deposited are not profitable to investors. In this and the following disadvantages, Light says, with poetic license, that "transform the original form of society would somehow in a" bank liquidity and hence Mill's Capital Fund and the safety of investors 'funds'.

In line with the Third Millennium, smoking and the company was its CEO illiterate mirror structure in a new technology: the companyHeart of the product offering. Light was able to successfully pass through it to be an Avatar-IT surround themselves with experts, specialists in real technology, providing the Ponzi scheme, with a patina of legitimacy. He said, ahead of a suite of technically qualified in order to achieve its shareholders and customers that the king was naked.

Seven years after the founding of the Mill, I was held to consider matters relating to intellectual property. About twelve months in my work,Original Bondholders began to contact me, worried about not having received budget Mill - for that matter, no communication at all from the board of directors or managers for several years. More troubling, about a man who had asked an investor to buy back its convertible note maturing loans. Light refused to honor the obligations. The paper trail was light, the money used from the pool of accredited investors of their own pockets, and the lineMoney from new investors to employees, pay the share options held by contract, thus perpetuating the list. A textbook definition of the classic Ponzi scheme, with a slight twist: the money of new investors to pay dividends to initial investors.

I approached the CEO with my concerns. It was no longer responds, as the Board. Entered into force in the new Sarbanes-Oxley Act provided new resources for lawyers caught in this dilemma, allowing them the ability, without fear of informantRetaliation for breach of attorney-client privilege. The new law allows me to shareholders and law enforcement for the misuse of corporate funds warning light. Attorney-client privilege "was a minor concern, as long Light waived any privilege to enjoy when he asked me active, called the fact that I wash business revenues for its conversion to personal use. As I dug deeper into the history of the CEO , digging a deep list of studies of accountants, lawyers and contractors owed moneyI learned that this is one of the tricks light: the money in accounts that secrete his client lawyer Trust was, knowing that the lawyer would be obligated, the funds are like a release Light client, whether that money was dirty. In addition, shareholders faced with infidelity of Light, I told his attorney general actions offices in two states. Formal investigations Millennium III and its CEO were in progress.

With the heating turned on by law enforcement authorities and shareholders,Light has a grave of money, embezzlement by his company, fled the state and at the shop in Arizona. Light does not expire with the investors' money as theft. His mentality was such that he was constitutionally incapable of assets between corporate and private assets. When the saw Mill strength of its heritage, so there was no theft in this twisted world view. This would be a recurring theme in his latest Ponzi schemes. His flight has dozens of investorsWashington State, Nevada and Idaho, with the bag - all at their expense. Up to date have not yet recovered penny for eighteen months, despite the two parallel investigations AG offices in Washington and Arizona.

A good cheater is rarely static in the product or presentation. This is especially true after a Ponzi scheme has been suspended. According to the Light was kicked out of Washington State and began again in Arizona, has changed its entire business model on the New Age fairSedona crowd. With men tend towards products and services in which the service can not be measured empirically. New Age meditations, contracting and drinking proved to mature as a market to exploit, since it is largely faith and not regulated by the FDA or AMA. registered under the flag of a foreign company in Arizona Mill Corp., Light began to investors for companies to ask the layman - Self-Improvement Courses - the amazing - space tourism. He reached hisFlagstaff Real Estate Partners as its own, using the commitment to invest. His approach to gun offers a variety of services failed. After five years without seeing a return and a loss of more than $ $ 500,000, gave him the boot Partners Light, with the power to expel from the property. To date, Light owns the property as his, although his name was not on the title and won a court order for illegal detention.

Light then ventured furtherSouth Santa Fe, New Mexico, this time changed its appearance to a surprising conclusion: Light moved diagonally, the suits and Brooks Brothers button down conservatism 'aging rock star "Couture and his pitch in a metaphysical" Marks ", fully change its look and product. The man seemed to Rod Stewart. In a bad day. Where was reserved and presentable, while working conditions and living in Seattle, Light was now like a madman, without someone knowledgeable, articulateand balanced, fronting to the negotiating table. These managers were in sync with the deteriorating psyche defection CEO, Light of men after major advance was rapidly thin the veneer of legitimacy seem trompe l'oeil more. To see how "Crazy" is crazy, read the nonsense that is posted on his MySpace page: myspace.com / duraingo. Video clips and pictures of light enforcement of its various drawbacks are linked to its homepage. Used with permission from his enormous ego, which isa rare opportunity to see a fraud in action.

Near Los Alamos, CEO Mill exploited in a group of physicists and retired businessmen working on new encryption technology. Light is able to convince them that he was an Information Technology visionary with the ability of product developers with two financiers. Despite his eccentric look new, almost pulled out of this, hypnotizes a young naive investor from Los Angeles who ponied to $ 75,000 with the promise of a much larger second angel USDInvestors into consideration. Before uttering this second test, the investor had the good sense to run late, associated documentation through his lawyer. The lawyer had the sad task of providing information that his client was not only his money away, there is no basis for criminal prosecution or civil proceedings nebulous nature of "service contract" concluded with Mill. The agreement does not bind the tricks are not identifiable, legally binding, specific performance. As a legal document, the Treatymeaning. It 'was enough to convince investors, some of his money on wrapping: this is where his value ends. In short, from a legal standpoint, the $ 75,000 was merely a "gift" from one individual to another.

Present: Word of Light reappearance in New Mexico came to my office last month. I have been in contact with lawyers from both investors and innovators that a lot. Neither lawyer was surprised, Light was an impostor, because he camethis conclusion without my help. However, they were shocked that he had a fruitful history and recidivism as an experienced man of confidence. I provided them with documentation outlined Light Ponzi schemes in Washington and Arizona. A week later, simple, light emerged in Santa Monica, California, where he was at home endlessly as a guest in the villa of a demi-success, marketing, well-intentioned new-age. Soon he had tapped into a network marketing professionalwhere both can co-opt and sale of business contacts.

Like a parasite looking for a host body, light not only assume, even in the business of his life marked, but their personal lives. The key to her with - and trust of many people - was suitable for professional and social networks of his victims to feed his fraud. If an investor dries, another is on the network can be triggered and went.

As a result of itsRelationships with light, was losing credibility marketing, standing and relationships within the community close knit naturopathic. Fomenting discord was more fiery temperament Light. He had a history of violent explosions scale, it would be this problem, especially minorities and women. Not exactly in line with the vision of New Age humanist. Light the true character was revealed when his temper flared. Despite the heavy responsibility he has presented his guest, was the businessmanso taken by the charisma swindler who was in denial.

Marketing good friend, another prominent businessman in the homeopathic community in Los Angeles was not so enamored of Light or blinded by his charisma. Although the tricks in a Hollywood Hills party said that he found a place too good to be true and Googled the name Light in His BlackBerry: my name showed up with a warning to potential investors Millennium III. She called my office the day after hisThe concern for his friend's welfare. It took write-downs and sit with the patient talks marketing, with the documentation that I offered the story objectively Layout Light and repeated armed machinations. Even with hard facts before him was the marketing incorrigible. It took a second set of documents and correspondence directly from my desk to marketing, to shake free from the grip Svengali-like man with his reasoning skills. Marketing kicksLight the sidewalk.

Over the past five years, successfully completed three different light has assembled financial scams, and so the actions against investors who recognize the relationship with him, who had been cheated outrageously threatening cut. In respect of all successful swindler Light has a keen eye for identifying a need his sign, so convincing that has positioned the brand unique to convince that must - in spite of the absence of intention, the ability or desire, the keep his promise.

Lightbegins to unravel and grow into force. The impostor has become entangled in his web of deceit. Unable to his lies straight, he contradicts himself and sits down at every corner. His temperament, misogyny and racism have repeated the examination intensification of law enforcement, defrauded investors, lawyers and accountants appeared to lessen the stress Kliege across the line of lights on its various Ponzi schemes.

With men are often difficult to detect because they are not driven by monetaryWinning alone. They are in large part through the adrenaline rush experienced in constant movement for the killing, gutting and then hung to bleed from their prey. Light is particularly important in this sense, distorted, often lose the big score, set to steal and other fraud in another state. Steal just enough money to continue the deception, but not so much kindness that the criminal or civil law are filed as a matter of course.

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